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Q&A: Receiving Credit Card Donations

When are contributions made using a credit card receiptable?

Last Reviewed: April 7, 2020
Q&A: Receiving Credit Card Donations
Image: Witthaya Prasongsin | Getty Images

Some members of our church make charitable contributions using a credit card. When are these donations receiptable? On the date the charge is made? The date that the donor pays the credit card statement? Some other date?

The general rule is that when a deductible payment is made with borrowed money, the deduction is not postponed until the year in which the borrowed money is repaid. Such expenses must be deducted in the year they are paid and not when the loans are repaid. Accordingly, a taxpayer who makes a contribution to a qualified charity by a charge to the taxpayer's bank credit card is entitled to a charitable contribution deduction in the year the charge was made and the deduction may not be postponed until the taxpayer pays the indebtedness resulting from such charge.

The current edition of IRS Publication 526 ("Charitable Contributions") confirms this conclusion by ...

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Posted:
  • November 1, 2010
  • Last Reviewed: April 7, 2020

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